FCA: First illegal crypto ATM operator pleads guilty
The first person charged with illegally running a crypto ATM network has pleaded guilty after the Financial Conduct Authority brought a case against him earlier this month.
Olumide Osunkoya pleaded guilty today to five offences at Westminster Magistrates’ Court, after running multiple crypto ATMs without FCA registration.
In addition, he was charged for creating and using false documents and for possessing criminal property.
Crypto ATMs are machines that allow you to buy or convert money into crypto, but there are currently no legal crypto ATM operators in the UK.
The news also marks the FCA’s first criminal prosecution relating to unregistered crypto activity under money laundering and terrorist financing regulations introduced by the government in 2017.
Osunkoya illegally operated a network of at least 11 crypto ATMs which processed more than £2.6m in crypto transactions over the course of almost two years until September 2023.
The 45-year old continued to operate and grow his ATM network in local convenience shops across the UK, despite applying for registration in 2020 and being refused by the FCA in 2021.
He is suspected to have made substantial profit from the operation, with the court hearing evidence he received a margin on each transaction ranging between 10 per cent and 60 per cent.
Osunkoya completed no customer due diligence or source of funds checks on those who used the crypto ATMs, the FCA said. The court heard evidence that those likely committing money laundering or tax evasion were using his machines.
The court also heard that Osunkoya created a false alias to try and evade FCA rules, telling the regulator that he had sold the crypto ATM network to an individual who, the evidence showed, did not exist.
Charges in relation to a Sally Lavington Osunkoya were withdrawn by the FCA following the guilty pleas.
Osunkoya was charged with two offences for operating crypto ATMs without FCA registration, where the maximum sentences for this are up to 2 years in prison, or a fine, or both.
He was also charged with two offences relating to false documents he created and used, which carries a maximum sentence of up to 10 years in prison, or a fine, or both.
In addition, he was charged with an offence of possession of criminal property, namely £19,540 in cash which is suspected to be the proceeds of his crypto ATM business, which can carry a sentence of up to 14 years in prison.
Sentencing for the offences will take place at Southwark Crown Court at a date to be confirmed.
“Our message today is clear. If you’re illegally operating a crypto ATM, we will stop you,” Therese Chambers, the FCA’s joint executive director of enforcement and market oversight, said when Osunkoya was first charged.
“If you’re using a crypto ATM, you are handing your money directly to criminals. Criminals can exploit crypto ATMs to launder money globally.”